The network uses pessimistic proofs via the AgglayerGateway for settlement on Ethereum, with vault bridges for cross-chain asset transfers.

Katana Network provides a scalable execution environment connected to Ethereum through the Agglayer interoperability layer.

Katana Network is a Layer 2 blockchain built on the Agglayer ecosystem.

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Blockchains (L2)

Katana

# Katana Network Token incentives Methodology

## 1. Overview

Token incentives measures the value of native assets distributed to liquidity providers and users of Katana Network. These incentives are distributed as KAT emissions to liquidity providers via Merkl, specifically targeting Sushi vKAT gauge winners and Morpho campaigns. This metric reflects the protocol's ongoing expenses to bootstrap liquidity and incentivize activity across Katana Chain.

## 2. Data sources

- **Blockchain events**: `Claimed` events from `Distributor` contracts, covering Katana Chain
- **External data**: End-of-day price feeds and asset metadata for KAT, wKAT V1, and wKAT V2

## 3. Step-by-step calculation

### Component A: Reward claim extraction

- **Purpose**: Capture reward distributions from the canonical Merkl Distributor contract
- **Logic**: `Claimed` events are parsed from `Distributor` contracts. The recipient address, reward asset address, and raw claim amount are extracted. Only events where the `removed` flag is false are retained.
- **Key fields**: `user_address`, `token_address`, `amount`

### Component B: Asset normalization and aggregation

- **Purpose**: Prevent double-counting of wrapped assets and aggregate daily claims
- **Logic**: Claims for wrapped assets, specifically wKAT V1 and wKAT V2, are normalized to canonical KAT because they redeem 1:1 to KAT in the same transaction via a wrapper contract. Daily claim amounts are aggregated by day, chain, and product (Katana Chain).
- **Key fields**: `token_address`, `amount`

### Component C: Decimal correction and USD conversion

- **Purpose**: Normalize claim amounts to USD
- **Logic**: Raw claim amounts are normalized by decimal precision using asset metadata. The normalized amounts are then multiplied by end-of-day asset prices to determine the USD value of the incentives. Daily values are zero-filled for days with no activity.
- **Key fields**: `amount`, `price_usd`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of native tokens distributed as incentives.

KatanaKAT

Token incentives

Token incentives

Competitive landscape

Chain breakdown